According to PropertyGuru’s report, the rental market saw a 57.91% increase in rental demand from 2020 to 2021. This trend indicates that there is a shift in home seekers’ preference in prioritizing rental options in the current economic uncertainty where recessions are mentioned in almost all news outlets.
With so many people in Malaysia refocusing on rental options as a means of improving their lifestyle, the need for furnished housing has dramatically increased, especially in bigger cities like Kuala Lumpur where job opportunities with higher income are found.
Below, I will be discussing the main principles my investors and I use when deciding on the type of furnishing to better suit the property as well as a checklist for how you can semi-furnish or fully furnish your home that will appeal to your tenants.
Do furnishing and decorating matter to your rental yield?
I hate moving furniture, I really do and I believe I am not alone in this matter. It is really stressful to me and sometimes, the very idea of how much I need to pack up, and the work involved in getting a moving truck and having them relocated to another place can be paralyzing.
Furnished rental properties are great because they can cater to a wider group of renters especially recent graduates and traveling professionals who do not have the money or time to shop for furniture. Beyond that, a furnished rental property can earn between 20-40% more than unfurnished rental properties depending on how furnished the property is and its’ location.
If you want to understand in-depth, do click on this article where I’ve broken down the benefits of furnished rental properties, the level of furnishing, and how furnishing a rental property may not be suitable for your investment game.
Key principles for furnishing your space
Before you get started in furnishing your property, I want you to know the principles I use and the recommendation that has helped many of my investors stay profitable in their rental business.
1. Prioritise function and durability
Always opt for furniture that is durable and easy to clean will be more appealing to renters and will last longer. Personally, I would avoid over-personalized or high-end furniture as it can be too specific in taste, and may not appeal to all renters.
2. Go for a neutral style
When it comes to colors, I would always stick to a neutral color palette and style for furniture and decor. This will make the space more versatile and appealing to a wider range of renters, also it encourages creativity from the renters as to what they can do with the place, making it personal for them.
I love it when my tenants make my place their home because they are more inclined to stay for the long term. This subsequently saves me the hassle of looking for another tenant that may trash my beloved property.
If you are working with an interior designer, I would personally recommend the “Muji” style. I absolutely love the combination of soft palettes and wooden furniture but you may prefer otherwise.
3. Focus on the basics
Depending on your choice between semi-furnished and fully furnished, I recommend that you always focus on the basics. If you are looking to fully furnish the property, then you would want to cater to the basics like a bed, couch, dining table, and chairs. These are the pieces of furniture that tenants will need to comfortably live in the space.
If you are looking to semi-furnish the property, then you want to cater to the built-in cabinets for the kitchen and rooms, the ceiling fans, and maybe the air-conditioner.
4. Prioritize lighting
Good lighting and neutral colors can make a space feel bigger, brighter, and more inviting. My general advice is to invest in a mix of downlights for the living room and bedrooms and overhead lighting for the dining area to create a well-lit space.
If you choose to fully furnish your property, then you may want to also include task lighting for the reading area, making it a lot homey and appealing for your renters.
5. Make the space feel homey
You do not need to fill every open space with furniture pieces in order to make the place homey. Instead, you can add small touches such as throw pillows, rugs, and artwork to make the space feel warm and inviting.
Also, did I mention that these do not need to cost a lot?
6. Consider additional amenities only if it adds value
If I am to rent a fully furnished property, I would expect a refrigerator and a washing machine to be provided. I am definitely able to afford a new refrigerator or washing machine but they are just inconvenient to move when I’m moving out of the place.
Beyond that, it is really up to you if you wish to provide a dryer, dishwasher, or even a smart home system. I do not see them as a necessity but they might actually appeal to some renters and some of these renters may be willing to pay you more for these features.
7. Have a budget and stick to it!
Repeat after me, I am not purchasing new furniture to furnish my dream home.
You need to remember that you are furnishing the place for a wide range of renters. Finding durable pieces that can withstand the test of time without breaking the bank is important. My personal favorite is to check out second-hand stores to see if any good deals exist.
You’d be surprised by what you can actually find in these places.
Furnishing the Kitchen
From my experience, furnishing the kitchen is perhaps the most important step. In many households, the kitchen is that very element that gels the family where food is made and family bond is strengthened.
With that in mind, it is important to ensure your kitchen is sufficiently equipped for your future renters.
For the semi-furnished, an estimated budget of RM 7,000
- Kitchen cabinet complete with sink
- Refrigerator
- Washing machine
- Stove
For the fully furnished, an estimated budget of RM 9,000
- Kitchen cabinet complete with sink
- Refrigerator
- Washing machine
- Stove
- Dining table and chair
- Microwave
- Dining set dishes, including cutlery and drinking glasses
- Pots, pans, and cooking utensils
Furnishing the living room
The living room can be either very expensive or very cheap to furnish. Depending on the level of furnishing, you can properly deck out the living room so that it stands out among the listing of properties. Otherwise, you can provide the basic necessities and let the tenants be creative with how they can make the space their own.
For the semi-furnished, an estimated budget of RM 2,000
- 1 HP or 1.5 HP air-conditioner
- Ceiling fan
- Blinds and curtains
For the fully furnished, an estimated budget of RM 5,000
- 1 HP or 1.5 HP air-conditioner
- Ceiling fan
- Blinds and curtains
- Sofa and coffee table
- Standing lamp
- TV stand and television set
- Bookcases and simple artwork
Furnishing the toilets
Did you know the average joe throughout his lifestyle will spend 1.5 years in the bathroom? Besides that, the toilet is also the very place we go to get ourselves clean, making sure it’s clean is fundamental to maintaining good personal hygiene.
For the semi-furnished, an estimated budget of RM 1,000 per toilet
- Water heater
- Sink and tap
- Toilet bowl
For the fully furnished, an estimated budget of RM 2,000 per toilet
- Water heater
- Sink and tap
- Toilet bowl
- Mirror and lighting
- Glass shower partition
Furnishing the bedrooms
The bedrooms are perhaps the most important place for rest. In most cases, the bedroom is a sanctuary from the noise and activity of modern life. We escape from the reality of life by entering our bedroom and getting cozy for a good night’s rest.
For the semi-furnished, an estimated budget of RM 4,000 per room
- 1 HP or 1.5 HP air-conditioner
- Ceiling fan
- Blinds and curtains
- Wardrobe
For the fully furnished, an estimated budget of RM 6,000 per room
- 1 HP or 1.5 HP air-conditioner
- Ceiling fan
- Blinds and curtains
- Wardrobe
- Bedframe and mattress
- Nightstand and lamp
Final Word
The key to a successful rental business is in anticipating your tenants’ needs during their stay. As I mentioned before, it does not need to be expensive or complicated. Whenever I furnish my rental property, I will be conscious of my budget and try to be creative in sourcing cheap durable pieces.
I advise the same to you and I wish you the best in your rental business.
